Situated Video Advertising With Tesco Screens

In 2004, Tesco launched an in-store video service under the name Tesco TV as part of its Digital Retail Network service. The original service is described in TESCO taps into the power of satellite broadband to create a state-of-the-art “Digital Retail Network” and is well worth a read. A satellite delivery service provided “news and entertainment, as well as promotional information on both TESCO’s own products and suppliers’ branded products” that was displayed on video screens around the store.
In order to make content as relevant as possible (i.e. to maximise the chances of it influencing a purchase decision;-), the content was zoned:

Up to eight different channels are available on TESCO TV, each channel specifically intended for a particular zone of the store. The screens in the Counters area, for instance, display different content from the screens in the Wines and Spirits area. The latest music videos are shown in the Home Entertainment department and Health & Beauty has its own channel, too. In the Cafe, customers can relax watching the latest news, sports clips, and other entertainment programs.

I’d have loved to have seen the control room:

Remote control from a central location of which content is played on each screen, at each store, in each zone, is an absolute necessity. One reason is that advertisers are only obligated to pay for their advertisements if they are shown in the contracted zones and at the contracted times.

In parallel to the large multimedia files, smaller files with the scripts and programming information are sent to all branches simultaneously or separately, depending on what is required. These scripts are available per channel and define which content is played on which screen at which time. Of course, it is possible to make real-time changes to the schedule enabling TESCO to react within minutes, if required.

In 2006, dunnhumby, the company that runs the Tesco Clubcard service and that probably knows more about your shopping habits at Tesco than you do, won the ad sales contract for Tesco TV’s “5,000 LCD and plasma screens across 100 Tesco Superstores and Extra outlets”. Since then, it has “redeveloped the network to make it more targeted, so that it complements in-store marketing and ties in with above-the-line campaigns”, renaming Tesco TV as Tesco Screens in 2007 as part of that effort (Dunnhumby expands Tesco TV content, dunnhumby relaunches Tesco in-store TV screens). Apparently, “[a]ll campaigns on Tesco Screens are analysed with a bespoke control group using EPOS and Clubcard data.” (If you’ve read any of my previous posts on the topic (e.g. The Tesco Data Business (Notes on “Scoring Points”) or ) you’ll know that dunnhumby excels at customer profiling and targeting.)

Now I don’t know about you, but dunnhumby’s apparent reach and ability to influence millions of shoppers at points of weakness is starting to scare me…(as well as hugely impressing me;-)

On a related note, it’s not just Tesco that use video screen advertising, of course. In Video, Video, Everywhere…, for example, I described how video advertising has now started appearing throughout the London Underground network.

So with the growth of video advertising, it’s maybe not so surprising that Joel Hopwood, one of the management team behind Tesco Screens Retail Media Group should strike out with a start-up: Capture Marketing.

[Capture Marketing] may well be the first agency in the UK to specialise in planning, buying and optimising Retail Media across all retailers – independent of any retailer or media owner!!

They aim to buy from the likes of dunnhumby, JCDecaux, Sainsbury, Asda Media Centre etc in order to give clients a single, independent and authoritative buying and planning point for the whole sector. [DailyDOOH: What On Earth Is Shopper Marketing?]

So what’s the PR strapline for Capture Marketing? “Turning insight into influence”.

If you step back and look at our marketing mix across most of the major brands, it’s clearly shifting, and it’s shifting to in-store, to the internet and to trial activity.
So what’s the answer? Marketing to shoppers. We’ll help you get your message to the consumer when they’re in that crucial zone, after they’ve become a shopper, but before they’ve made a choice. We’ll help you take your campaign not just outside the home, but into the store. Using a wide range of media vehicles, from digital screens to web favourite interrupts to targeted coupons, retail media is immediate, proximate, effective and measurable.

I have no idea where any of this is going… Do you? Could it shift towards making use of VRM (“vendor relationship management”) content, in which customers are able to call up content they desire to help they make a purchase decision (such as price, quality, or nutrition information comparisons?). After all, scanner apps are already starting to appear on Android phones (e.g. ShopSavvy) and the iPhone (Snappr), not to mention the ability to recognise books from their cover or music from the sound of it (The Future of Search is Already Here).

PS Just by the by, here’s some thoughts about how Tesco might make use of SMS:

PPS for a quick A-Z of all you need to know to start bluffing about video based advertising, see Billboards and Beyond: The A-Z of Digital Screens.

Author: Tony Hirst

I'm a Senior Lecturer at The Open University, with an interest in #opendata policy and practice, as well as general web tinkering...